The 2018 Sustainability Report shows that Varvel has rediscovered vitality and growth

The 2018 Sustainability Report shows that Varvel has rediscovered vitality and growth

04/07/2019

The latest edition of the Bologna-based group’s official report highlights a positive trend in sales and growth. The ingredients of Varvel’s success include innovative marketing strategies, reduced manufacturing costs and increased turnover from exports.

Valsamoggia (BO), 21 June 2019 – As every year, in 2019 too the Varvel Group is presenting a Sustainability Reportillustrating the previous year’s results. This official document (available on line from the corporate websites www.varvel.com, www.varvelusa.com and www.varvel.in) analyzes the group’s organization and corporate identity and describes the various drivers of success.

In addition to a description of the group’s fundamental values, its production system and its reference market, the latest Sustainability Report provides a picture of a dynamic and socially responsible company that, while inevitably subject to market fluctuations, is able to survive undamaged and return with renewed vigor and innovation.

The first proof of Varvel’s new energy lies in the group’s indebtedness, which has fallen by 11%compared with previous years. “This is an extremely encouraging result. It is proof of a clear improvement in terms of growth and confirms the validity of our strategy, which is based on innovation, customization, social responsibility and the valorization of human and energy resources,”states Mauro Cominoli, Varvel’s Managing Director.

Another major contribution to performance has come from an EBITDA(Earnings Before Interest, Tax, Deprecation and Amortization) of 3 million euros (9%), in line with the sector average.

Varvel’s commitment to stable labor relations is confirmed by the fact that nearly all employees (77 out of 84, or 91.7% of the workforce) are employed with permanent contracts. The number of women in the workforce is also impressive for a company in the mechanical engineering sector, which is traditionally male-dominated: 38 employees (45% of human resources) are female. Varvel Group employees have an average age of 44 and regularly benefit from training and personal development: a total of 25 courses were delivered to almost half of the company’s workforce in 2018.

Varvel’s social responsibility also assumes the form of direct support for charities through a program of continuous finance for three non-profit organizationsin particular. Since 2004, the group has been dedicating a fixed contribution of 2 cents in every euro earned from product sales to ANT (the Italian Cancer Association), MSF (Doctors Without Borders) and UNICEF (the United Nations Children’s Fund), helping the less fortunate from its own earnings. In the last fifteen years the company has donated a total of 282,000 euros.

The principal drivers of growthinclude strategic decisions that have not only boosted production but also optimized and made more efficient the company’s production processes and flows. One of the solutions implemented for this purpose is Dadistel, a digital production control system for the turning, milling, thread-cutting and cylindrical grinding sections. On top of this and again with Industry 4.0 in mind, the group is also presenting Varvel Mechnology System, a model for “accelerated change” destined to transform the company from a “production center” to a “competence center” by focusing on timelines and development plans.

Finally, the 2018 Sustainability Report highlights a shift in turnover towards export markets. In 2014 the ratio of domestic to export turnover was 40-60. Last year this shifted in favor of exports, with 34% of turnover coming from the domestic market and 66% from exports. Increased worldwide sales have made a significant contribution to the company’s positive results. The official gearboxes division balance sheet for 2018 came to 33.416 million euros.

Thanks to the subsidiaries MGM-Varvel – Power Transmission Pvt Ltd (India) and Varvel USA LLC (United States), the group’s highly efficient, domestic and export distribution network and investments in research and technical innovation, 2019 is destined to see similar rates of growth and success.